Table Of ContentCodification of
Statements on
Standards for
Accounting and
Review Services
Numbers 21 to 24
As of May 2018
1805-0504
Copyright © 2018 by
American Institute of Certified Public Accountants. All rights reserved.
Reprinted from
AICPA Professional Standards
Accounting and Review Services Parts
(as of May 2018)
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ISBN 978-1-94830-641-6 (print)
ISBN 978-1-94830-642-3 (ePub)
iii
PREFACE
Thispublication,issuedbytheAccountingandReviewServicesCommittee
(ARSC),isacodificationofStatementsonStandardsforAccountingandReview
Services (SSARSs), and the related interpretations of SSARSs applicable to
performingengagementstopreparefinancialstatementsandperformingand
reportingoncompilationandreviewengagements.
SSARSs are issued by ARSC, the senior committee of the AICPA desig-
nated to promulgate standards under the "General Standards Rule" (ET sec.
1.310.001)andthe"ComplianceWithStandardsRule"(ETsec.1.300.001) of
theAICPACodeofConductwithrespecttounauditedfinancialstatementsor
other unaudited financial information of an entity that is not required to file
financial statements with a regulatory agency in connection with the sale or
tradingofitssecuritiesinapublicmarket.The"ComplianceWithStandards
Rule"requiresanAICPAmemberwhoperformsengagementstopreparefinan-
cialstatements,compilationsorreviewstocomplywithstandardspromulgated
bytheARSC.Pursuanttoparagraph.15ofAR-Csection60,GeneralPrinciples
for Engagements Performed in Accordance With Statements on Standards for
AccountingandReviewServices,anaccountantmustcomplywithanuncondi-
tionalrequirementinallcasesinwhichthecircumstancesexisttowhichthe
unconditionalrequirementisrelevant.SSARSsusetheword"must"toindicate
anunconditionalrequirement.Paragraph.15ofAR-Csection60furtherstates
thatanaccountantmustcomplywithapresumptivelymandatoryrequirement
in all cases in which such a requirement is relevant, except in rare circum-
stances.SSARSsusetheword"should"toindicateapresumptivelymandatory
requirement.
Paragraph .06 of AR-C section 60 defines interpretative publications as
interpretations of SSARSs; exhibits to SSARSs; the AICPA Guide, Compi-
lation and Review Engagements, guidance on reviews, compilations, and en-
gagements to prepare financial statements included in AICPA Audit and Ac-
counting Guides;and AICPA Statements of Position,to the extent that those
statementsareapplicabletosuchengagements.Interpretativepublicationsare
notSSARSs.Interpretativepublicationsarerecommendationsontheapplica-
tionofSSARSsinspecificcircumstances,includingengagementsforentitiesin
specialized industries.An interpretative publications is issued under the au-
thorityoftheARSCafterallARSCmembershavebeenprovidedanopportunity
to consider and comment on whether the proposed interpretative publication
isconsistentwithSSARSs.Pursuanttoparagraph.17ofAR-Csection60,the
accountantisrequiredtoconsiderapplicableinterpretativepublicationsinthe
performanceofanengagementinaccordancewithSSARSs.
ACCOUNTINGANDREVIEW
SERVICESCOMMITTEE
MikeFleming,Chair
MichaelP.Glynn,SeniorTechnicalManager—
AuditandAttestStandards
©2018, AICPA
What’sNewinThisEdition v
WHAT’S NEW IN THIS EDITION
STANDARDSRECENTLYISSUED
Statement Title IssueDate Section
StatementonStandards OmnibusStatement May2018
forAccountingand onStandardsfor
ReviewServices Accountingand
(SSARS)No.24 Review
Services—2018
ADDITIONALCHANGES
Section Addition
AR-C60A,GeneralPrinciplesfor Additionofsectionasaresultof
EngagementsPerformedin theissuanceofSSARSNo.24.
AccordanceWithStatementson
StandardsforAccountingandReview
Services
AR-C90A,ReviewofFinancial Additionofsectionasaresultof
Statements theissuanceofSSARSNo.24.
AR-C100,Special Additionofsectionasaresultof
Considerations—International theissuanceofSSARSNo.24.
ReportingIssues
Section Change
AR-C60,GeneralPrinciplesfor AmendedbySSARSNo.24.
EngagementsPerformedin
AccordanceWithStatementson
StandardsforAccountingandReview
Services
AR-C90,ReviewofFinancial AmendedbySSARSNo.24.
Statements
©2018, AICPA
TableofContents vii
TABLE OF CONTENTS
Section Page
... How This Publication Is Organized.......................... 1
STATEMENTSONSTANDARDSFORACCOUNTINGAND
REVIEWSERVICES(Clarified)[AR-C]
AR-C Cross-References to SSARSs........................... 3
AR-C Introduction........................................... 5
Statements on Standards for Accounting and Review
Services (Clarified)..................................... 15
60 General Principles for Engagements Performed in
Accordance With Statements on Standards for
Accounting and Review Services........................ 27
60A General Principles for Engagements Performed in
Accordance With Statements on Standards
for Accounting and Review Services..................... 47
70 Preparation of Financial Statements......................... 65
80 Compilation Engagements.................................. 79
90 Review of Financial Statements.............................. 115
90A Review of Financial Statements.............................. 199
9090 Review of Financial Statements: Accounting and Review
Services Interpretation of AR-C Section 90............... 275
100 Special Considerations—International Reporting Issues...... 277
120 Compilation of Pro Forma Financial Information............. 289
... AR-C Appendixes........................................... 303
... AR-C Topical Index......................................... 307
©2018, AICPA Contents
HowThisPublicationIsOrganized 1
HOW THIS PUBLICATION IS ORGANIZED
TheAR-Csectionsincludeclarifiedaccountingandreviewservicesstandards
issuedbySSARSNo.21,StatementsonStandardsforAccountingandReview
Services:ClarificationandRecodification.Thesesectionsare arrangedasfol-
lows:
AR-CCross-ReferencestoSSARS
AR-CIntroduction
GeneralPrinciplesforEngagementsPerformedinAccordance
WithStatementsonStandardsforAccountingand
ReviewServices
PreparationofFinancialStatements
s CompilationEngagements
e
c
vi s ReviewofFinancialStatements
er nt
w S nta SpecialConsiderations—InternationalReportingIssues
vie cou CompilationofProFormaFinancialInformation
e c
g and R ublic A AApRp-CenTdoixpeicsalIndex
n P
Accounti Certified souTTrchheeesAoAfRRs--eCCctIiCnotnrrososdcsru-RecatetifoeendredbnyecseScsrSiAtboeRsSStShNAeoR.MS2as1yilni2s0tts1h0eaAlcluRriSsrseCuneptdrtoeSjxeStc.AtRtoSrsevainsdeatnhde
or of clarify all existing compilation and review standards in the Codification of
ndards f nstitute SsetraiAteescmcwoeuintnhtsttinohngelSaatnsadtntrdweaovriddesiwgfiotsrseriAnvcidccioecusantiintnitngegrtpharenesdteaRcttieoivonnisetwaorSweehnriuvcimhcetbshe.ereindtienrptrheeta9t0i0on0
Sta n I relates.Interpretationsimmediatelyfollowtheircorrespondingsection.Forex-
n ca ample,interpretationsrelatedtosection90arenumbered9090,whichdirectly
nts o meri followssection90.
of Stateme 2018 by A EacTThhhpeeaAsrtaRagn-rCdaaparhpdpwseiantrdheiixndeiasvisaderecedtcioiunnrtroiesnsdeteclyctiiromenassel,lreyvaencduh.mwbitehreidts. ownsectionnumber.
odification y AICPA opyright © tthoemTpahrjoeonrAodRuivn-Cicseitmoonpesin,ctassel.ciTtnihdoenexsin,uadsneexdsiptshaarearkrgaerynawpgehodrndaulmmphebtaehbrosed.tictoalflaycbilyittaotpeirceafenrdenrecfeertos
CBC
©2018, AICPA
AR-CCross-ReferencestoSSARSs 3
AR-C Cross-References to SSARSs
Part I—Statements on Standards for Accounting and
Review Services and Sources of Sections in Current Text
Statements on Standards for Accounting and Review Services*
No. DateIssued Title AR-CSection
21 Oct.2014 StatementsonStandardsfor
AccountingandReview
Services:Clarificationand
Recodification1
22 Sept.2016 CompilationofProForma 120
FinancialInformation
23 Oct.2016 OmnibusStatementon
StandardsforAccountingand
ReviewServices—20162
24 May2018 OmnibusStatementon
StandardsforAccountingand
ReviewServices—20183
Sources of Sections in Current Text
AR-C
Section Contents Source
60 GeneralPrinciplesforEngagements SSARSNo.21
PerformedinAccordanceWithStatementson
StandardsforAccountingandReview
Services
70 PreparationofFinancialStatements SSARSNo.21
80 CompilationEngagements SSARSNo.21
90 ReviewofFinancialStatements SSARSNo.21
100 SpecialConsiderations—International SSARSNo.24
ReportingIssues
120 CompilationofProFormaFinancial SSARSNo.22
Information
* ThistablelistsStatementsonStandardsforAccountingandReviewServices(SSARSs)issued
subsequenttoSSARSNo.21,StatementsonStandardsforAccountingandReviewServices:Clarifi-
cationandRecodification,whichwasissuedinOctober2014.RefertopartII,"ListofStatementson
StandardsforAccountingandReviewServicesNos.1–20,"ofthissectionforSSARSsissuedpriorto
SSARSNo.21.
1 SSARSNo.21createdvarioussectionsthroughoutAccountingandReviewServices(Clarified).
Seethefollowingsection,"SourcesofSectionsinCurrentText,"forafulllist.
2 SSARSNo.23hasbeenintegratedwithinsections60.01,60.03-.04,60.07,60.17,60.26,60.A4,
60.A12,60.A21,60.A26,60.A33,60.A38,70.01,70.10,70.14,70.19,70.A1-.A3,70.A9,80.01,80.10,
80.24-.25,80.29-.30,80.A1-.A4,80.A14,90.01,90.05,90.11-.12,90.39g,90.81-.83,90.A1,90.A11-.A12,
90.A20,and90.A132-.A134.
3 SSARSNo.24hasbeenintegratedwithinsections60.07,60.A51,90.05,90.34,90.39,90.65,
90.66-.69,90.79,90.80-.82,90.A10,90.A116-.A126,90.A138-.A140,and100.
©2018, AICPA
4 AR-CCross-ReferencestoSSARSs
Part II—List of Statements on Standards for Accounting
and Review Services Nos. 1–20
No. DateIssued Title
1 Dec.1978 CompilationandReviewofFinancialStatements
2 Oct.1979 ReportingonComparativeFinancialStatements
3 Dec.1981 CompilationReportsonFinancialStatements
IncludedinCertainPrescribedForms
4 Dec.1981 CommunicationsBetweenPredecessorand
SuccessorAccountants
5 July1982 ReportingonCompiledFinancialStatements
6 Sept.1986 ReportingonPersonalFinancialStatements
IncludedinWrittenPersonalFinancialPlans
7 Nov.1992 OmnibusStatementonStandardsforAccounting
andReviewServices—1992
8 Oct.2000 AmendmenttoStatementonStandardsfor
AccountingandReviewServicesNo.1,
CompilationandReviewofFinancialStatements
9 Nov.2002 OmnibusStatementonStandardsforAccounting
andReviewServices—2002
10 May2004 PerformanceofReviewEngagements
11 May2004 StandardsforAccountingandReviewServices
12 July2005 OmnibusStatementonStandardsforAccounting
andReviewServices—2005
13 July2005 CompilationofSpecifiedElements,Accounts,or
ItemsofaFinancialStatement
14 July2005 CompilationofProFormaFinancialInformation
15 July2007 EliminationofCertainReferencestoStatements
onAuditingStandardsandIncorporationof
AppropriateGuidanceIntoStatementson
StandardsforAccountingandReviewServices
16 Dec.2007 DefiningProfessionalRequirementsinStatements
onStandardsforAccountingandReviewServices
17 Feb.2008 OmnibusStatementonStandardsforAccounting
andReviewServices—2008
18 Feb.2009 ApplicabilityofStatementsonStandardsfor
AccountingandReviewServices
19 Dec.2009 CompilationandReviewEngagements
20 Feb.2011 RevisedApplicabilityofStatementsonStandards
forAccountingandReviewServices
©2018, AICPA
TableofContents 5
AR-C Introduction
TABLE OF CONTENTS
Page
AR-CIntroduction............................................................... 7
Foreword ................................................................ 7
AR-CGlossary—GlossaryofTerms ....................................... 9
©2018, AICPA Contents
Foreword 7
AR-C Introduction
Foreword
Clarified Statements on Standards for Accounting
and Review Services
Toaddressconcernsoverclarity,length,andcomplexityofitsstandards,theAc-
countingandReviewServicesCommittee(ARSC)establishedclaritydrafting
conventionswhicharesubstantiallythesameasthoseadoptedbytheAuditing
StandardsBoardinclarifyingtheauditingliterature.TheARSCredraftedall
ofitsStatementsonStandardsforAccountingandReviewServices(SSARSs)
inaccordancewiththoseconventions,whichincludethefollowing:
•
EstablishobjectivesforeachclarifiedAR-Csection
•
IncludeaDefinitionssection,whererelevant,ineachclarifiedAR-
Csection
•
Separate requirements from application and other explanatory
material
•
Number application and other explanatory material paragraphs
using an A- prefix and present them in a separate section that
followstheRequirementssection
•
Useformattingtechniques,suchasbulletlists,toenhanceread-
ability
This section contains "AR-C" section numbers instead of "AR" section num-
bers. As part of the clarification of the SSARSs, the AR section numbers as
designatedbySSARSsNos.1–20wererecodifiedandthe"AR-C"wasselected
as an identifier in order to avoid confusion with references to superseded
"AR" sections. Superseded "AR" sections were deleted from AICPA Profes-
sional Standards in May 2017, by which time substantially all engagement
forwhichthe"AR"sectionswerestilleffectivewereexpectedtobecompleted.
The superseded "AR" sections can be accessed at www.aicpa.org/research/
standards/compilationreview/pages/default.aspx.
Authority of SSARS
SSARSs are standards issued by ARSC, the senior committee of the AICPA
thatisdesignatedbyCounciltoissuepronouncementsinconnectionwiththe
unaudited financial statements or other unaudited financial information of a
nonpublicentity. The"ComplianceWithStandardsRule"(ETsec.1.310.001)of
theAICPACodeofProfessionalConductrequiresamemberwhoperformscom-
pilation,review,orotherprofessionalservicesaddressedbySSARSstocomply
withstandardspromulgatedbyARSC.
Anaccountantmustcomplywithanunconditionalrequirementinallcasesin
whichsuchrequirementisrelevant.SSARSsusetheword"must"toindicatean
unconditionalrequirement.Anaccountantmustcomplywithapresumptively
mandatoryrequirementinallcasesinwhichsucharequirementisrelevant.
However,if,inrarecircumstances,theaccountantjudgesitnecessarytodepart
from a relevant presumptively mandatory requirement,the accountant must
©2018, AICPA
